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TMI Blog2016 (4) TMI 1234X X X X Extracts X X X X X X X X Extracts X X X X ..... we set aside the findings of the CIT(A) to the above extent and remand the matter to the Assessing officer with the direction to decide the limited issue concerning the loans and advances made to M/s Punjab Machinery Works P. Ltd, M/s Vicky Carriers and M/s Rajiv Kapoor Transport afresh, in accordance with law, after affording due and reasonable opportunity of being heard to the assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... onfirmed the addition and, hence, the assessee is in appeal before the Tribunal. 4. We have heard the rival submissions. Shri Gagandeep Singh, Ld. Counsel for the assessee pointed out that the amount in question was paid by cheques to the aforesaid concerns namely M/s Sonal Fabricators Pvt Ltd and M/s Disk India Pvt Ltd for the fabrication / manufacturing of four LPG Bullet Trucks / LPG Road Tankers for transportation of explosive LPG under proper fabricating licnece from the Ministry of Commerce and Industry, Department of Explosives, Government of India. It is claimed that M/s Sonal Fabrication Pvt Ltd is engaged in the business of manufacturing / fabrications of LPG tanks which are fitted on the vehicle chassis to transport petroleum pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss purposes and do not represent any interest free loans or advances for non business purposes. The assessee has also a submitted copy of the confirmation letter on behalf of M/s Sonal Fabricators Pvt Ltd., wherein the said concern has certified that the assessee on their behalf had paid ₹ 5 lakhs vide cheque No. 533245 dated 3.12.2005 to M/s Disk India Pvt Limited towards payments against new LPG tanks. The copy of the said certificate is available at page 31 of the assessee's paper book. M/s Sonal Fabricators Pvt Ltd have also filed another confirmation letter certifying that the said concern had received ₹ 11,50,000/- from assessee as an advance against manufacturing of four LPG tanks on labour basis. The details of the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rajiv Kapoor Transport, it was claimed that these concerns are engaged in the business of plying of trucks as the sub contractors of the assessee. The outstanding balance is an aggregated advance given to them for plying of trucks under the sub- contractorship of the assessee as transporter. The Assessing officer disallowed the interest under the provisions of section 36 (1)(iii) of the Act. 7. On appeal, the CIT(A) held as under:- "Next coming to the debit balance in the account of Punjab Machinery Works P.Ltd, (Rs. 29,00,000/-), it is seen from the statement of account that the opening balance of ₹ 9,30,000/- coming forward from earlier years. However, for the amounts advanced in the current year, I do not find force in the argume ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest free advances and deposits lying with the assessee to the extent of ₹ 99,40,376/-. The details are available at page 58 of the paper book. He therefore, submitted that no disallowance was called for. He further pointed out that the outstanding amount in the name of M/s Vicky Carriers was outstanding balance on account of plying of trucks under the sub contractorship of M/s Hindustan Petroleum Corporation Ltd, a Government of India undertaking. Copies of the accounts were filed before the Assessing officer. Shri Gagandeep Singh, Ld. Counsel for the assessee further pointed out that both the concerns i.e. assessee and M/s Vickey Carriers are engaged in the transportation job for Hindustan Petroleum Ltd., under a common tender and w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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